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Alibaba’s Alipay Suspends Accounts Related to Crpto Trading

In a coordinated effort with the government of China, Alipay, a payment remittance platform and a brand owned by Alibaba, has suspended accounts involved in over-the-counter trading of Bitcoin.

According to Beijing News, the Hangzhou-based company is also monitoring all its users’ accounts, which are suspected to be involved in OTC trading.

Furthermore, Alipay is also installing an inspection system on both web-based and mobile app software to discover transactions related to cryptocurrencies. The offensive has begun days after the Chinese government issued a notice asking hotels to avoid giving space to conduct cryptocurrency related events.

Furthermore, the Chinese government is also working out to block all the 124 odd exchanges operating in the country through VPN. Even though China welcomes blockchain related companies, it is averse to cryptocurrencies as the government believes that investors will lose their money due to a high percentage of scams and volatility.

Following the implementation of a blanket ban on cryptocurrency trading earlier this year, the percentage of Chinese yuan versus Bitcoin (BTC) trades have vastly declined and currently accounts for only about 1% of global cryptocurrency trading volume.

Ant Financial Services Group, a subsidiary of Alibaba, has opined that cryptocurrency trading puts investors at risk. Alipay is also planning to educate its users about the risks involved in cryptocurrency trading. Specifically, Alipay has stated

“[…] remind users not to be deceived by various false propaganda, to recognize the risks of virtual currency transactions, and to avoid the possible losses suffered.”

China’s Risk Rectification Office has stated that it will continue to monitor closely the online activities of its citizens. Furthermore, the government body is working out the strategy to block access to 124 exchanges operating from abroad.

China has great experience in censoring information. It has tremendous success in blocking foreign news and media platforms such as Facebook, Twitter, and Google. However, citizens continue to find new methods to access information. Express VPN and NordVPN continue to enjoy huge popularity among its citizens.

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